FirstSun Capital Bancorp Reports Third Quarter 2026 Results
FIRSTSUN CAPITAL BANCORP (FSUN) filed an SEC Form 8-K — Results of Operations and Financial Condition. FirstSun Capital Bancorp Reports Third Quarter 2026 Results Third Quarter 2026 Highlights: • Net interest margin of 3.82% • 21.9% noninterest income to total revenue 1 • Net income of $38.4 million, $0.82 per diluted share (adjusted, $48.2 million, $1.03 per diluted share, see “N
How this was made
The 30-second read
Why it matters
The report provides fresh quantitative data on profitability, margins, and capital return, enabling traders to reassess valuation.
Market read
FirstSun's earnings beat and share repurchase may trigger short‑term buying interest in the stock and affect comparable regional banks.
What to watch
Loan sales and reduced interest‑bearing deposits could pressure future earnings growth.
FirstSun Capital Bancorp reported third-quarter net income of $38.4 million, or $0.82 per diluted share, and adjusted net income of $48.2 million, or $1.03 per diluted share.
Third-quarter profitability recovered from the prior-quarter loss as credit provisioning and merger-related expenses fell materially, while net interest margin expanded to 3.82%. The release also showed lower deposits and loans, higher nonperforming-asset ratios, and adjusted efficiency ratio deterioration from the prior quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, three months ended September 30, 2026GAAP | $38.4M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $0.82 per diluted share | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $48.2M | – | – |
| Adjusted diluted earnings per share, three months ended September 30, 2026non-GAAP | $1.03 per diluted share | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $140.3M | decrease of $2.9 million | – |
| FTE net interest income, three months ended September 30, 2026non-GAAP | $142.2M | – | – |
| Net interest margin, three months ended September 30, 2026GAAP | 3.82% | increased 24 basis points | – |
| Net interest margin, FTE basis, three months ended September 30, 2026non-GAAP | 3.87% | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $216.7M | – | – |
| Total interest expense, three months ended September 30, 2026GAAP | $76.36M | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $4.4M | – | – |
| Net charge-offs, three months ended September 30, 2026GAAP | $3.3M | – | – |
| Ratio of net charge-offs to average loans outstanding, three months ended September 30, 2026GAAP | 0.11% | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $39.4M | decrease of $1.6 million | – |
| Deposit account service fees, three months ended September 30, 2026GAAP | $2.37M | – | – |
| Treasury management service fees, three months ended September 30, 2026GAAP | $5.10M | – | – |
| Credit and debit card fees, three months ended September 30, 2026GAAP | $3.06M | – | – |
| Trust and investment advisory fees, three months ended September 30, 2026GAAP | $9.88M | – | – |
| Mortgage banking services, net, three months ended September 30, 2026GAAP | $12.74M | decreased $3.2 million | – |
| Other noninterest income, three months ended September 30, 2026GAAP | $6.23M | increased $1.0 million | – |
| Noninterest income to total revenue, three months ended September 30, 2026GAAP | 21.9% | decrease of 0.3% | – |
| Noninterest expense, three months ended September 30, 2026GAAP | $126.6M | decrease of $45.2 million | – |
| Salary and employee benefits, three months ended September 30, 2026GAAP | $63.34M | decreased $5.4 million | – |
| Merger related expenses, three months ended September 30, 2026GAAP | $13.25M | decreased $44.3 million | – |
| Other noninterest expenses, three months ended September 30, 2026GAAP | $27.43M | increased $4.5 million | – |
| Adjusted total noninterest expense, three months ended September 30, 2026non-GAAP | $113.3M | – | – |
| Efficiency ratio, three months ended September 30, 2026GAAP | 70.43% | – | – |
| Adjusted efficiency ratio, three months ended September 30, 2026non-GAAP | 63.06% | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 21.2% | – | – |
| Return on average total assets, three months ended September 30, 2026GAAP | 0.98% | – | – |
| Adjusted return on average total assets, three months ended September 30, 2026non-GAAP | 1.23% | – | – |
| Return on average stockholders' equity, three months ended September 30, 2026GAAP | 8.23% | – | – |
| Adjusted return on average stockholders' equity, three months ended September 30, 2026non-GAAP | 10.33% | – | – |
| Loans held-for-investment, September 30, 2026GAAP | $11.5B | annualized decline of 3.8% | – |
| Total deposits, September 30, 2026GAAP | $13B | decrease of $0.4 billion, or 13.2% on an annualized basis | – |
| Average deposits, three months ended September 30, 2026GAAP | $13.2B | decrease of $1.3 billion or 35.0% on an annualized basis | – |
| Allowance for credit losses to loans outstanding, September 30, 2026GAAP | 1.52% | increase of two basis points | – |
| Nonperforming assets to total assets, September 30, 2026GAAP | 1.46% | – | – |
| Total assets, September 30, 2026GAAP | $15.3B | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $729.2M | – | – |
| Total stockholders' equity, September 30, 2026GAAP | $1.81B | – | – |
| Subordinated debt, net, September 30, 2026GAAP | $206.2M | – | – |
| Book value per share, September 30, 2026GAAP | $39.75 | increase of $0.46 | – |
| Tangible book value per share, September 30, 2026non-GAAP | $35.60 | increase of $0.44 | – |
| Common equity tier 1 risk-based capital ratio, September 30, 2026GAAP | 11.99% | – | – |
| Total risk-based capital ratio, September 30, 2026GAAP | 14.29% | – | – |
| Tier 1 leverage ratio, September 30, 2026GAAP | 10.33% | – | – |
| Net income, nine months ended September 30, 2026GAAP | $37.12M | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $92.91M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $0.91 | – | – |
| Adjusted diluted earnings per share, nine months ended September 30, 2026non-GAAP | $2.27 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased 1,245,224 common shares for $49.7 million under our share repurchase program.
What drove it
- Net interest margin increased 24 basis points to 3.82%, supported by a 17 basis-point increase in loan yield to 6.33% and a two basis-point decrease in total cost of interest-bearing deposits to 2.75%.
- The sale of $1.3 billion in loans late in the second quarter and $1.4 billion in securities in the second quarter were components of the merger-related balance sheet repositioning strategy.
- Provision for credit losses declined to $4.4 million from $40.4 million in the second quarter, when downgrades and write-downs of two C&I lending relationships drove provisioning.
- Merger related expenses declined $44.3 million from the prior quarter, and salary and employee benefits declined $5.4 million due primarily to merger-related workforce reductions.
- The company completed the First Foundation core system conversion in late September.
Concerns
- Loans decreased to $11.5 billion at September 30, 2026, reflecting an annualized decline of 3.8%.
- Deposits decreased $0.4 billion in the third quarter of 2026, or 13.2% on an annualized basis, and average deposits decreased $1.3 billion or 35.0% on an annualized basis.
- Nonperforming assets to total assets increased to 1.46% from 1.32% at June 30, 2026.
- Adjusted efficiency ratio increased to 63.06% from 61.99% in the prior quarter.
- Net interest margin was 3.82%, compared with 4.07% in the third quarter of 2025.
What to watch
- Further loan and deposit trends following the merger-related balance sheet repositioning strategy.
- Credit performance in CRE, C&I and multifamily exposures, following specific reserves for two CRE loans and third-quarter net charge-offs related to a C&I lending relationship and a multifamily relationship acquired from First Foundation.
- Realization of operating synergies following First Foundation integration and the core system conversion.
- The trajectory of net interest margin, loan yield, deposit costs and mortgage banking services income.
Balance sheet and cash flow
- Total consolidated assets were $15.3 billion as of September 30, 2026.
- Cash and cash equivalents were $729,157 at September 30, 2026.
- Total deposits were $13.0 billion at September 30, 2026.
- Subordinated debt, net was $206,222 at September 30, 2026.
- Cash flow from operations and free cash flow were not reported.
Analysis
FirstSun returned to GAAP profitability in the third quarter, reporting net income of $38.4 million and $0.82 per diluted share after a prior-quarter net loss of $22.9 million and $(0.49) per diluted share. Adjusted net income was $48.2 million, or $1.03 per diluted share, compared with $21.0 million, or $0.45 per diluted share, in the prior quarter. The recovery was driven principally by a lower provision for credit losses and lower merger-related costs. Provision expense was $4.4 million versus $40.4 million in the second quarter, while merger related expenses fell to $13.246 million from $57.559 million.
Core spread performance improved sequentially. Net interest margin increased 24 basis points to 3.82%, and FTE net interest margin was 3.87%. Loan yield rose 17 basis points to 6.33%, while total cost of interest-bearing deposits decreased two basis points to 2.75%. However, net interest income was $140.3 million, down $2.9 million from the prior quarter, as average loans, investment securities and interest-bearing cash and other assets declined following the balance sheet repositioning.
Noninterest income totaled $39.4 million and declined $1.6 million from the prior quarter. Mortgage banking services income decreased $3.2 million, partially offset by a $1.0 million increase in other noninterest income, driven by higher swap and loan syndication revenue. Total noninterest expense fell to $126.6 million from $171.7 million, but the adjusted efficiency ratio increased to 63.06% from 61.99%. The GAAP efficiency ratio improved to 70.43% from 93.25% because merger related expenses declined sharply.
Balance-sheet contraction continued. Loans decreased to $11.5 billion and deposits decreased to $13.0 billion at September 30, 2026. Credit loss indicators improved sequentially in provision and net charge-offs, but nonperforming assets to total assets increased to 1.46% from 1.32%. Capital ratios remained above well-capitalized levels, with a common equity tier 1 risk-based capital ratio of 11.99%, total risk-based capital ratio of 14.29%, and tier 1 leverage ratio of 10.33%. The company repurchased 1,245,224 common shares for $49.7 million.
Management, verbatim
Third quarter results reflect our continued progress on our strategic priorities highlighted by an improved net interest margin as a result of continued balance sheet improvements, a strong diversified revenue profile and improved earnings performance, including benefits from operating synergies realized following the acquisition of First Foundation in the second quarter.
Neal Arnold, Chief Executive Officer and President
Additionally, in late September, we successfully completed the core system conversion of First Foundation, representing another important milestone in our overall integration plan.
Neal Arnold, Chief Executive Officer and President
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax rate or other financial guidance was not provided.
- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Total revenue was defined as net interest income plus noninterest income, but a total-revenue amount was not separately printed.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow and free cash flow were not reported.
- Dividend declaration or payment information was not reported.
- Reportable operating segment revenue was not reported.
- Prior-year effective tax rate was not reported.
- Individual deposit-category, loan-portfolio-category, balance-sheet and non-GAAP reconciliation metrics beyond those included in key_metrics are reported in the filing tables but are not separately discussed in the earnings narrative.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard Form 8‑K earnings release for a U.S. listed regional bank.
Ticker impact
FirstSun Capital Bancorp filed its Q3 2026 earnings on Form 8‑K, reporting net income of $38.4 M and a share repurchase of 1.25 M shares.
likely upward pressure as the beat and repurchase are priced in
Net income rose sharply versus the prior quarter and the company disclosed a $49.7 M share buyback, both supportive of the stock.
Market effects
regional bank earnings trend may influence peer valuations
U.S. small‑cap banking sector could see modest gains
limited to U.S. banking niche
Counterpoint
If earnings expectations were already high, the modest margin improvement may not sustain a rally.
Key entities
- companyFirstSun Capital Bancorp
U.S. regional bank (NASDAQ:FSUN) reporting Q3 2026 results.
